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Value for SBC, Service Tax

Issue Id: - 109594
Dated: 23-12-2015
By:- Mangesh khedkar

Value for SBC


  • Contents

Dear sir,

We had given contract to SSI vendor in composite work (work contract service). vendor consider 70% value for service tax & 100% value for vat hence which value applicable for swachh bharat cess.

Posts / Replies

Showing Replies 1 to 7 of 7 Records

Page: 1


1 Dated: 23-12-2015
By:- Rajagopalan Ranganathan

Sir,

For charging SBC the abated value on which service tax is paid is to be taken.


2 Dated: 23-12-2015
By:- Ganeshan Kalyani
I agree with the reply submitted by Rajagopalan Sir.

3 Dated: 23-12-2015
By:- YAGAY AND SUN

Dear Mangesh,

In Maharashtra VAT Laws under Works Contract Tax, your vendor has option to levy VAT/WCT in following three way, namely:

  1. On Actuals
  2. On abated amount
  3. Under Composition Schem

If your vendor charges VAT/WCT on 100% value then it means charges on VAT/WCT on service portion also which is not the mandate of VAT Laws. Discuss with your SSI Vendor about the correct levy of VAT/WCT under MVAT Act read with rules made there under.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)


4 Dated: 26-12-2015
By:- Ram Babu singh

SBC shall be charged on value of service portion i.e 70% of the value of work contract.


5 Dated: 26-12-2015
By:- Ganeshan Kalyani
Yes it has been cleared by CBEC that SBC is a levy alike service tax and hence it will be charged like that of service tax.

6 Dated: 26-12-2015
By:- CA Surender Gupta

Yes, I fully agree with the views as above of the experts.

If service tax is exempt, SBC will be exempt.

Where service tax is chargeable on abated rate, sbc will be charged at abated rate also.

Where service tax is charged at full rate on reduced value, sbc will also be charged at full rate on reduced value.


7 Dated: 27-12-2015
By:- MARIAPPAN GOVINDARAJAN

The views of Shri Surendra Gupta is self explanatory.


Page: 1

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